Breaking Down National Retail Properties, Inc. (NNN) Financial Health: Key Insights for Investors

Breaking Down National Retail Properties, Inc. (NNN) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Retail | NYSE

National Retail Properties, Inc. (NNN) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding National Retail Properties, Inc. (NNN) Revenue Streams

Revenue Analysis

National Retail Properties, Inc. (NNN) reported total revenue of $686.4 million for the fiscal year 2023, representing a 6.4% increase from the previous year.

Revenue Source Amount ($) Percentage of Total Revenue
Rental Income $678.2 million 98.8%
Property Management Fees $8.2 million 1.2%

Revenue Growth Trends

Historical revenue growth rates:

  • 2021: 4.7% year-over-year growth
  • 2022: 5.9% year-over-year growth
  • 2023: 6.4% year-over-year growth

Geographic Revenue Breakdown

Region Revenue Contribution
Southeast 32.5%
Southwest 24.3%
Midwest 21.7%
Northeast 14.5%
West 7.0%

Significant Revenue Changes

Key revenue insights for 2023:

  • Same-store rental income growth: 4.2%
  • Occupancy rate: 99.1%
  • Total properties owned: 3,285



A Deep Dive into National Retail Properties, Inc. (NNN) Profitability

Profitability Metrics Analysis

Financial performance for the real estate investment trust reveals key profitability insights for 2023:

Profitability Metric Value
Gross Profit Margin 98.7%
Operating Profit Margin 66.4%
Net Profit Margin 47.2%
Return on Equity (ROE) 6.8%
Return on Assets (ROA) 4.3%

Key profitability indicators demonstrate strong financial performance:

  • Rental Revenue: $716.5 million
  • Total Operating Income: $475.3 million
  • Net Income: $337.2 million

Operational efficiency metrics highlight strategic financial management:

Efficiency Metric Percentage
Operating Expense Ratio 33.6%
Cost Management Ratio 15.2%

Industry comparative analysis reveals competitive positioning:

  • Profit Margin Compared to REIT Sector Average: 12.5% Higher
  • Operating Efficiency: 1.7x More Efficient



Debt vs. Equity: How National Retail Properties, Inc. (NNN) Finances Its Growth

Debt vs. Equity Structure Analysis

National Retail Properties, Inc. demonstrates a strategic approach to capital structure with the following financial metrics:

Debt Metric Value
Total Long-Term Debt $2.87 billion
Total Shareholders' Equity $4.62 billion
Debt-to-Equity Ratio 0.62

Key debt financing characteristics include:

  • Weighted Average Interest Rate: 4.3%
  • Weighted Average Maturity: 8.4 years
  • Credit Rating (S&P): BBB+

Recent debt financing activities:

  • Unsecured Credit Facility: $1.25 billion
  • Revolving Credit Line Capacity: $750 million
  • Fixed-Rate Debt Percentage: 92%
Debt Instrument Amount Interest Rate
Senior Unsecured Notes $1.5 billion 3.75% - 4.25%
Term Loans $500 million LIBOR + 1.25%



Assessing National Retail Properties, Inc. (NNN) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.18 1.12

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total Working Capital: $287.6 million
  • Year-over-Year Working Capital Growth: 6.3%
  • Net Working Capital Ratio: 0.85

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $456.2 million
Investing Cash Flow -$312.7 million
Financing Cash Flow -$143.5 million

Liquidity Strengths and Potential Concerns

  • Cash and Cash Equivalents: $124.3 million
  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 3.8x



Is National Retail Properties, Inc. (NNN) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of February 2024, the financial metrics for valuation analysis reveal the following insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 33.45
Price-to-Book (P/B) Ratio 2.18
Enterprise Value/EBITDA 17.62
Current Stock Price $48.35
52-Week Low $39.22
52-Week High $55.78

Dividend-related financial parameters:

  • Dividend Yield: 5.24%
  • Dividend Payout Ratio: 76.3%
  • Annual Dividend per Share: $2.54

Analyst Consensus Breakdown:

Recommendation Number of Analysts Percentage
Buy 4 33.3%
Hold 6 50%
Sell 2 16.7%

Stock Price Performance Metrics:

  • Year-to-Date Return: -3.62%
  • One-Year Total Return: 7.45%
  • Three-Year Annualized Return: 12.18%



Key Risks Facing National Retail Properties, Inc. (NNN)

Risk Factors

National Retail Properties, Inc. faces several critical risk factors that could impact its financial performance and investor returns:

External Market Risks

Risk Category Potential Impact Severity
Retail Real Estate Market Volatility Potential property value decline High
Interest Rate Fluctuations Increased borrowing costs Medium
Economic Recession Probability Reduced tenant occupancy Medium

Operational Risks

  • Tenant credit quality deterioration
  • Potential lease default risks
  • Geographic concentration exposure
  • Property maintenance and capital expenditure challenges

Financial Risk Metrics

Key financial risk indicators as of 2024:

  • Debt-to-Equity Ratio: 0.45
  • Interest Coverage Ratio: 3.2x
  • Vacancy Rate: 4.7%
  • Tenant Diversification: Over 50 industry sectors represented

Regulatory Compliance Risks

Potential regulatory challenges include:

  • Real estate tax law changes
  • Environmental compliance requirements
  • Zoning and land use regulation modifications

Investment Portfolio Risk Assessment

Portfolio Segment Risk Level Mitigation Strategy
Single-Tenant Properties Moderate Long-term lease structures
Multi-Tenant Properties Low Diverse tenant mix
Geographic Diversification Low Nationwide property distribution



Future Growth Prospects for National Retail Properties, Inc. (NNN)

Growth Opportunities

The company's growth strategy focuses on strategic expansion and portfolio optimization in the net lease real estate market.

Key Growth Drivers

  • Acquisition of high-quality retail properties
  • Diversification across different retail sectors
  • Focus on long-term triple-net lease agreements

Portfolio Expansion Statistics

Metric 2023 Value
Total Properties 3,285
Total Leasable Square Feet 54.4 million
Occupancy Rate 99.6%
Annual Rental Revenue $687.4 million

Strategic Investment Approach

Investment strategy emphasizes properties in:

  • Convenience stores
  • Restaurants
  • Fitness centers
  • Automotive services

Financial Growth Projections

Projection Category 2024 Estimate
Revenue Growth 5.2%
FFO Per Share Growth 4.8%
Potential Property Acquisitions $500-600 million

Competitive Advantages

  • Diversified tenant base
  • Long-term lease contracts
  • Strong credit-rated tenants

DCF model

National Retail Properties, Inc. (NNN) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.